Monday, February 09, 2026
Calgary’s real estate market in 2026 is at a fascinating turning point. After years of rapid growth and high demand, the market is cooling slightly with increased supply and more balanced conditions between buyers and sellers. According to the Calgary Real Estate Board (CREB) and CMHC forecasts, home sales dropped 13.6% year-over-year in November 2025, while inventory rose 28%, leading to softer prices especially in higher-density segments like apartments and row homes. Rental vacancy rates are expected to stabilize around 5.8% in 2025 before declining through 2027 as new purpose-built rentals come online. However, with the city’s population continuing to grow—driven by migration and economic diversification into tech, renewables, and finance—the need for affordable, multi-family housing remains strong.
This is where 8-plexes shine as an investment opportunity. An 8-plex is a small multi-family building with eight units, often configured as four above-ground units with legal basement suites, built on a standard or combined lot in urban infill areas. They’re denser than duplexes or row homes but simpler than larger apartments, making them ideal for developers and investors looking for high yields without massive scale. In Calgary, where infill is encouraged through programs like the Infill Fast Track and Downtown Development Incentive Program (DIP), 8-plexes can deliver rental yields of 7-9%, gross profit margins of 20-35% on flips, and long-term appreciation in a market where single-family homes are increasingly unaffordable (median price over $500,000).
Why focus on 2026? Construction costs are stabilizing (2-4% inflation forecast), material prices like lumber are flat, and government incentives are robust—CMHC’s Affordable Housing Fund offers up to $200,000 per unit in forgivable loans for projects with affordable components, while DIP provides $75 per square foot for conversions. Population growth is expected to slow slightly but still add thousands, keeping demand steady. This guide breaks down the top reasons to build 8-plexes in Calgary this year, with an investor-focused analysis of costs, profits, ROI, incentives, best neighborhoods, design tips, real examples, challenges, and mitigation strategies. By the end, you’ll see why 8-plexes are a smart, profitable choice for infill investment.
Reason 1: High Rental Yields in a Low-Vacancy Market
One of the biggest draws for 8-plexes is their potential for steady cash flow through rentals. Calgary’s rental vacancy rate is projected to decline after peaking at 5.8% in 2025, per CMHC. Demand from young professionals, families, and migrants keeps occupancy high, especially for multi-family like 8-plexes in inner-city areas.
Rents for 2-bed units: $1,800-$2,200/month; with suites, total per building $15,000-$25,000/month. Low turnover (stable tenants) and rising rents (2-4% forecast) make 8-plexes ideal for cash flow.
Investor Breakdown: Build cost $1.5M-$2.5M for an 8-plex; annual income $180,000-$300,000; net yield 7-9% after 30% expenses. ROI in 8-12 years if holding, or flip for 20-30% margin.
To see rental trends, check CREB’s data: CREB Housing Statistics or CMHC’s rental report: CMHC Rental Market Report.
Reason 2: Strong Profit Margins from Infill Density
8-Plexes maximize land use on standard 50-100 ft lots, allowing higher density (8 units vs 2 in a duplex) without the scale of full apartments. This spreads land costs ($500,000-$800,000 per lot) over more units, reducing per-unit expenses and boosting total revenue.
In 2026, with construction costs stabilizing, an 8-plex can be built for $1.5M-$2.5M total ($200,000-$300,000 per unit), including site prep, framing, and finishes. Sale prices per unit: $350,000-$500,000 (total $2.8M-$4M) for market-rate, or hold for rentals. Gross profit margins: 20-35% ($500,000-$1M net), higher if including affordable units for grants.
Compared to row homes (3-6 units, 20-32% margins), 8-plexes offer more units for similar lot sizes, increasing total profit. For flips, quick sales in high-demand areas like Highland Park yield fast cash; for holds, steady income in a cooling but stable market.
Investor Breakdown: Land $600K + build $1.8M = $2.4M total. Sell 8 units at $450K each = $3.6M revenue → $1.2M gross profit (33% margin). Rental: 8% yield after expenses.
For cost calculators, try CMHC Project Funding Tools or local builder estimates.
Reason 3: Government Incentives & Fast-Track Approvals Make It Easier
Calgary and Alberta governments are pushing multi-family infill to meet housing needs, offering incentives that directly improve profitability for 8-plexes.
- City of Calgary Infill Fast Track: Streamlined permits for compliant designs, cutting approval times from 6-12 months to 2-4 months—saving $20,000-$50,000 in holding costs.
- Downtown Development Incentive Program (DIP): $75/sq ft (up to $15M) for office-to-residential conversions that include 8-plex style units, with bonuses for affordable.
- CMHC Affordable Housing Fund: Up to $200,000 per unit in forgivable loans/grants if 20%+ units are affordable (below 80% market rent).
- CEIP Rebates: 10% on energy-efficient features like insulation or solar.
- Provincial Partnership Program: Grants up to $100,000/unit for deeply affordable rentals.
Stacking these can reduce costs 20-40%. For example, an 8-plex with 2 affordable units could get $400,000+ in funding.
Investor Breakdown: Incentives cut effective build cost by $200,000-$500,000, boosting margins 5-10%.
See City of Calgary’s infill guide: Infill Development or CMHC’s fund: Affordable Housing Fund.
Reason 4: Low Vacancy and High Rental Demand in Calgary
Calgary’s rental market remains tight in 2026, with vacancy rates declining after a 2025 peak of 5.8%, per CMHC. Demand from young professionals, families, and migrants keeps occupancy high, especially for multi-family like 8-plexes in inner-city areas.
Rents for 2-bed units: $1,800-$2,200/month; with suites, total per building $15,000-$25,000/month. Low turnover (stable tenants) and rising rents (2-4% forecast) make 8-plexes ideal for cash flow.
Investor Breakdown: Net yield 7-9% after expenses; cash-on-cash return 10-15% with leverage.
For market data, visit CMHC Rental Market Report.
Reason 5: Faster Build Times and Lower Costs with Prefab
Prefab and modular methods are trending for 8-plexes in 2026, reducing timelines 20-50% (4-8 months vs 8-12) and costs 10-20%. Factories build units indoors, avoiding Calgary weather delays, then assemble on-site.
Investor Breakdown: Saves $100,000-$300,000 on labor/holding; faster to revenue.
Example: ATCO’s modular 8-plex projects in Calgary.
See Modular Housing Association for resources.
Reason 6: Strong Resale and Appreciation Potential
8-Plexes appreciate well in Calgary’s growing market, with 2026 prices stabilizing but long-term growth forecast 2-3% annually. Strata-title and sell individual units for $350K-$500K each, or hold as income property.
Investor Breakdown: Flip for 20-35% margins; hold for 5-7% annual appreciation + rents.
Reason 7: Alignment with Calgary’s Housing and Climate Goals
Calgary’s Municipal Development Plan encourages density like 8-plexes, offering fast-track approvals. Green features qualify for rebates, tying into net-zero goals.
Investor Breakdown: Incentives add $200K+ in savings.
Reason 8: Diversified Income Streams with Mixed-Use or Suites
Add commercial ground floors or suites for extra revenue.
Investor Breakdown: Boosts yields 2-3%.
Reason 9: Low Competition in Mid-Size Multi-Family
Fewer mid-size like 8-plexes than duplexes or large apartments, leading to higher demand.
Investor Breakdown: Faster lease-up.
Reason 10: Future-Proofing with Sustainability
Incorporate low-carbon materials for rebates and appeal.
Investor Breakdown: 5-10% higher rents/values.
Real-World 8-Plex Projects in Calgary
- Bowness 8-plex (2025): Cost $2.2M, rents $2,500/unit → 8.5% yield.
- Highland Park 8-plex (2025): Sold units $450K each → 28% margin.
Risks & How to Mitigate Them in 2026
Delays: Use prefab.
Market slowdown: Mixed-income for grants.
Costs: Local sourcing.
Final Thoughts:
When you look at Calgary’s real estate market in 2026, 8-plexes really do stand out as one of the smartest, most balanced investment opportunities available today.
They’re not the smallest infill play like a duplex — which limits your total upside to just two units per lot and often lower overall returns. They’re also not the massive, high-risk apartment buildings that require huge capital, complex condo corporations, years-long approvals, and uncertain lease-up periods. An 8-plex sits in that rare middle ground: enough density to spread land costs across eight revenue-generating units, but still small enough to be manageable, financeable, and relatively quick to build and stabilize.
In a city where land in desirable inner-city neighborhoods keeps getting more expensive, 8-plexes let you do far more with the same footprint. You can take one standard 50–75 ft lot (or two adjacent ones) and turn it into eight sellable or rentable units instead of one or two. That kind of leverage is powerful. Add in the fact that Calgary’s population is still growing (even if the pace has slowed a bit), rental demand remains solid in mature neighborhoods, young professionals and families are looking for affordable options close to transit and amenities, and vacancy rates are expected to tighten again after 2025’s temporary peak, and you have a product that checks almost every major box for today’s market.
What makes 2026 especially interesting is the timing. Construction costs have largely stabilized after the wild swings of 2021–2024 — lumber is flat, steel is only up modestly, labor availability is improving slightly with unemployment ticking up to around 4.7%. Interest rates are expected to stay in a range that still supports well-structured projects. And perhaps most importantly, government incentives are still very much alive and generous: CMHC’s Affordable Housing Fund can deliver forgivable loans and contributions worth tens of thousands per unit when you include some below-market rentals, the City of Calgary’s Development Incentive Program offers up to $75 per square foot for qualifying conversions or new builds with affordable components, CEIP financing gives you up to 10% back on energy-efficient upgrades, and the GST/HST rebate can shave another 5–13% off construction costs for purpose-built rentals. When you stack even a few of these properly, you’re often reducing your effective project cost by 20–40% — which directly flows to your bottom line.
That kind of leverage turns good deals into exceptional ones.
But the real strength of 8-plexes goes beyond the numbers. It’s the flexibility they offer you as an investor or developer. You can build to sell for quick capital gains — strata-title the units individually and flip them at $350,000–$500,000 each in strong neighborhoods. You can hold the entire building for long-term cash flow, collecting $15,000–$25,000 per month in gross rents with yields of 7–9% after expenses. Or you can do a hybrid: sell 5–6 units to recoup most of your capital and keep 2–3 for ongoing income. You can add legal basement suites to boost rental income or resale value. You can incorporate green features like heat pumps, better insulation, or solar-ready roofs to unlock extra rebates and attract eco-conscious tenants or buyers willing to pay a premium. You can even go mixed-income — include a couple of units at below-market rents to qualify for deeper provincial or federal grants — and still keep healthy overall margins.
In short, 8-plexes give you options. They let you adapt to whatever the market does in 2026 — whether it’s a hot seller’s market, a shift toward more rental demand, a sudden increase in interest from institutional buyers looking for small multi-family assets, or even a temporary slowdown that makes holding for cash flow more attractive.
Of course, nothing is risk-free. Construction delays can happen (especially if you don’t lock in contractors early), zoning appeals or neighbor pushback can slow permitting, cost overruns are always a possibility if you don’t plan contingencies, and market conditions can shift faster than expected. But 8-plexes have built-in buffers: lower per-unit risk than larger buildings, faster lease-up than single-family rentals in many areas, strong underlying demand in Calgary’s core neighborhoods, and access to multiple layers of government support that reduce your downside.
When you combine the financial math (strong yields, solid margins, incentive stacking), the market timing (stabilizing costs, continued population growth, tight rental fundamentals), and the flexibility (sell, hold, hybrid), 8-plexes emerge as one of the most intelligent and high-upside plays in Calgary’s infill landscape right now.
If you’re a developer or investor seriously considering your next move in Calgary real estate, ask yourself: Why stop at one or two units per lot when you can build eight — and multiply your returns without multiplying the risk exponentially?
The opportunity is real. The incentives are still generous. The demand is still there. And the market timing feels right.
The question is: are you ready to take advantage of it?
For developers who want to turn that question into reality, working with experienced local builders who understand Calgary’s infill rules, zoning quirks, incentive landscape, and the realities of building small multi-family projects can make all the difference between an average project and a standout, high-return one.
Good Earth Builders, with over 23 years of experience in the Calgary market and 846 completed projects, has built hundreds of successful infill developments — including many multi-family and small apartment-style buildings like 8-plexes. They specialize in efficient, high-quality multi-family and attached housing, and they’re known for helping developers navigate permits, maximize incentives, and deliver projects on time and on budget. Their commitment to planting 10 trees for every job also adds real environmental value to each development.
If you’re ready to explore whether an 8-plex (or a similar small multi-family project) is the right fit for your next Calgary investment,
📞Contact Good Earth Builders they can help you get started with confidence, clarity, and a realistic path to strong returns.
